Accounting FAQ's

1. What is bookkeeping?

Bookkeeping is the record-keeping process of accounting. A bookkeeper enters financial information pertaining to the business into its registers, journals, and ledgers (collectively known as "books").

2. What is accounting?

Accounting is the tracking of a business's income and expenses and using that data to evaluate its financial position

3. Is accounting really important to a business?

Accounting is not only important to a business, it is critical to its operation. Without accounting, a business cannot properly price its product or service, or know whether it is operating at a profit or loss. Also, failure to keep track of income and expenses, a business will lack the information necessary to prepare its tax return.

4. Why are accountants necessary?

Accountants are necessary to handle the financial activity of a business so that the owner or officers can concentrate on its day-to-day operations and growth. Accounting is not just about revenue and expenses, financial statements and tax returns. A competent accountant can assist the business owner in tracking the business's finances and make sure that it's running at its peak level. An accountant is a source for business consultation, organization, valuation and management. A knowledgeable tax accountant can offer ideas that can save a business thousands of dollars through tax planning. A competent accountant can also add value to a business.